Summary
An overview of the mandatory insurance coverage that a tenant must maintain throughout the duration of their lease term.
Tenant Insurance Requirements
Highlights
Core Liability and Property Coverage
The tenant is required to maintain commercial general liability insurance of at least $2,000,000 per occurrence. Additionally, they must hold property insurance covering 80% of the value of leasehold improvements, inventory, and equipment on an all-risk basis, as well as business income insurance covering a 12-month period.
Specialized and Additional Insurance
Mandatory coverage extends to plate glass, worker’s compensation, and $1,000,000 in hired/non-owned automobile liability. If improvements are made, builders risk insurance is required. If the premises involve alcohol sales, liquor/dram shop liability must be included with a $3,000,000 limit. Finally, an umbrella/excess liability policy of no less than $3,000,000 is required to maintain broad coverage standards.